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National health expenditures, 1999.

C A Cowan1, H C Lazenby, A B Martin

  • 1along1@cms.hhs.gov

Health Care Financing Review
|October 16, 2002
PubMed
Summary
This summary is machine-generated.

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Health care spending as a share of the economy remained stable from 1993 to 1999. This stability was due to economic growth and a shift to managed care, which reduced overall health expenditure growth.

Area of Science:

  • Health Economics
  • Public Health Policy

Background:

  • The period between 1993 and 1999 saw significant economic growth in the United States.
  • Concurrent with economic growth, there was a notable transition towards managed care models within the healthcare system.

Purpose of the Study:

  • To analyze the trends in health care spending as a share of Gross Domestic Product (GDP) between 1993 and 1999.
  • To investigate the factors contributing to the stability of health care spending during this period.

Main Methods:

  • Analysis of national health expenditure data.
  • Examination of economic indicators and healthcare system reforms during the specified timeframe.

Main Results:

  • Health care spending's share of GDP remained consistent from 1993 to 1999.

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  • A rapid shift to managed care and decelerating Medicare spending contributed to this stability.
  • These factors generated one-time savings, lowering aggregate health expenditure growth.
  • Conclusions:

    • The convergence of economic growth and managed care adoption temporarily moderated health care spending growth.
    • The observed savings from managed care adoption were largely a one-time effect.
    • Policy and economic conditions significantly influence national health expenditure trends.